← All recordsSW-0032 · Crypto · 2019-02-01 to 2025-06-30

Cross-sectional momentum

Did not pass
90Versions testedevery combination, fixed in advance
+0.98Best versionreturn adjusted for risk, per year
+0.64Luck alonewhat the best scores if nothing works
0.809Scorehas to reach 0.950

Result against chance

Best version found+0.98What luck alone gives+0.64Smallest edge visible+1.62
If the best version cannot beat what luck alone produces from the same number of tries, there is nothing there. The third bar is the smallest real edge this test could have detected: anything below it is invisible to the test, and that limit is stated rather than hidden.

Spread across every version

-0.18median +0.51+0.98zero
Every version tested, worst to best. The box holds the middle half. Showing only the best bar is how noise gets sold as skill. 96% of versions finished above zero.

What was sealed, and the verdict

Pre-registered test: does the best of 90 cross-sectional momentum variants clear DSR 0.95? Verdict: NO. DSR 0.809 — the closest any sweep in this registry has come, and still short.

Noticed afterwards: a hypothesis, not a finding

96% of variants were positive with a median annualised Sharpe of 0.51 and a best of 0.98 against an expected-under-null of 0.64. The family behaves as one thing rather than as a spread of better and worse rules.

PBO is 0.479, near the 0.5 coin-flip line. Choosing among these 90 variants carries almost no information out of sample. That is consistent with a uniform family-wide effect and inconsistent with some variants genuinely being better.

The effect comes from the stable end of the universe, not the volatile end. Splitting by symbol lifetime: 81 long-lived symbols (>40,000 bars) give a net Sharpe of 0.72, while 55 short-lived symbols (<20,000 bars) give 0.04. A spurious altcoin-volatility artefact would show the opposite, and the effect is stronger where liquidity is better.

Notes

This is the only family in 33 records to show a coherent signal, and it is also the only one with substantial published academic support in crypto. The test cannot confirm it: the detection limit is around 1.6 annualised Sharpe and the observed effect is roughly 0.7.

SW-0035, embargoed until 2029-06-30, is the holdout test — and its pre-registration states up front that it is underpowered. Confirming a true Sharpe of 0.72 at z=2 with 80% power needs roughly 136,000 hourly bars, about 15.6 years. Four years gives about 29%.

Sealed on the Bitcoin blockchain before the test ran.
sha256 d406f3b72247277c88f9f6f954d9460f045a3ecddc372eff4e6db25a07ffb2d5
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